Rising export demand boosted orthodox leaf prices at Kochi Tea auctions with average price realisation rising by ₹6 per kg.
Traders said there were firm enquires from CIS countries, Europe, and Turkey, but the surging prices almost on every week is spoiling the party with exporters failing to meet the commitment in fulfilling their orders.
A senior official in a leading tea production company said the Puja holidays and the setting up of winter in North India have reduced the crop availability and it is expected to be less till March next year. This will be a contributing factor for the prices to go up. Besides, Sri Lankan uncertainties have also hit the brew supply in global markets. Now, India only has a few crops to meet demand, and orders are pouring in from many markets. Given the emerging scenario, he said “the market for good quality teas will be firm to dearer in the near term”.
Quoting reports from Sri Lanka, traders said the island nation is witnessing a continuous downfall in tea production. August witnessed the lowest tea production in 28 years at 18 million kg against 23 million kg in August 2020.
CTC dusts slip
The average price realisation in sale 30 in Kochi auctions was at ₹181 compared to ₹175 in the previous week. The quantity offered in orthodox grades was 3,73,784 kg with 87 per cent sold. Nilgiri brokens and Fannings were firm to dearer. TFP & TFBOP grades continue to witness strong feature, the auctioneers Forbes, Ewart & Figgis said.
CTC leaf also witnessed a good demand with 91 per cent of the offered quantity of 54,500 kg sold.
However, an increase in offered quantities hit CTC dust prices, with the market lower by ₹2 to ₹5, and sometimes more following quality. The quantity offered was 10,55,000 kg and 78 per cent was sold. The average price realisation was down by ₹3 to ₹137 against ₹140 in the previous week.
The demand was less in orthodox dust and the quantity offered was 7,500 kg.